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Corporate Strategy | "Outsourcing & Off-shoring in India"

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Outsourcing & Off-shoring in India

- by B. Pothi Babu & Biswarup Das *

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  • Abundant Skilled Human Resources

  • Country Competitiveness-cost

  • Quality

  • Infrastructure

  • Government Policies-Taxation

  • Economy

    Global Advantage of India in Terms of Outsourcing & Off-shoring

  • Efficient Labor at Low Cost (Skill at Nil): Cost plays an important role in the choice of a destination for outsourcing. This includes quality, reliability, specific rare skills and ‘the right attitude’. This explains the continuing importance of Bangalore as a hub for supplying services to software industry, despite the fact that wages there are three times higher than in some other parts of India, and even more so than in lower wage countries such as Vietnam.

    Asian (specially India & Japan) ITES-BPO sector industry continues to grow from strength to strength, witnessing high levels of activity - both on-shore as well as off-shore mainly because of the following factors: -

    • Competitive pressures on client organizations

    • Ability of Indian vendors to ramp-up operations rapidly

    • Widening breadth of services offered by providers

    • Shift towards high-value services

    • Sustained cost advantage

    • Delivery process enhancement and improvement

    • Access to an abundant skill pool

  • Skilled Talent Pool: The Indian education system provides a unique blend of technical knowledge and communication skills. Adding to this, India has the largest English speaking population amongst the developing countries. It is due to the education system that India has and is producing one of the most talented software programmers in the world today. The government funded institutes like IITs (Indian Institute of Technology), IIMs (Indian Institute of Management), and a number of other reputed institutes every year add to this pool.

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    * Contributed by: -
    B. Pothi Babu & Biswarup Das,
    Both currently pursuing MBA from BIM, Trichy,
    Article published in KRIYA, March'06 Issue, the monthly magazine of the institute.


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